Do you know how much you’re truly worth? I know, we hear it over and over again, know you’re self-worth, you can do it, be secure, and be confident. But do you know how much you’re worth, if you had to put a dollar value to it? We are all priceless in our own right, but if you had to put a price tag on what it is that you bring to the table in your career or business, do you accurately know how much you’re worth and do you know how to validate that “number” when someone tries to challenge paying you THAT much.
I put an emphasis on the THAT for a reason. The reason? Glad you asked! Because when you really understand your value of what you bring to your company, boardroom or freelance work then that number you come up with, may surprise you. You may begin to question yourself, “Can I really ask for THAT much?” The answer is that yes you can…because you’re worth it. But the key is you have to KNOW that you’re worth it. You have to be able to justify that number and do so with assurance and poise.
Where is all this coming from? Well, I had a dinner meeting that changed my life. I was asking questions on what to charge for upcoming projects and how to effectively price my work as “legacy enhancing and life enriching” speaker and specialist. She asked me “How much do you think you’re worth?” I thought of a number, but hesitated to say it because I didn’t think I was worth “THAT” much. I guess she sensed that and she then encouraged me to be honest with myself and to focus on learning how to defend charging “THAT” number. She then had me calculate the number of hours I would work and how much my expenses were when working on certain speaking engagements and projects. So I want to pass that onto you, especially fellow entrepreneurs and freelancers. Consider these helpful points when determining your “fee” –
- How much does it cost to prepare for that job? Consider all costs involved in preparation (supplies, transportation, etc). You have to make a profit to cover your costs.
- How many hours do you spend developing and then delivering the job? There is a difference with actually showing up to do the job and then the preparation that went into getting the job done. A stylist may take (2) hours to deliver the job on the set of the photo shoot, however, he or she probably took an additional (6) hours in pulling clothes, fittings and adjustments.
- What level of expertise and prior experience are you bringing to the job? Perhaps you are a novice at what you’re doing so you may not want to charge the same as someone who is bringing 10+ years experience to the table. Consider all of your previous experience and achievements that you have.
- Is it better to offer a “package” price or an hourly rate price? Perhaps it makes more sense for you offer a “package” that includes a variety. In your package, you can include a list of things that you’re offering or you can determine that you have a flat hourly rate for your services. Use whichever one makes sense to you for that job or client.
- After determining the costs, amount of time going into developing and then delivering, how much do you need to make an hour to determine your final fee? Do the math here.
- Charge THAT fee.
- Consider having a price range. For example, you can say “I normally charge anywhere from $100 – $150 an hour for styling clients.” Be flexible where you can.
Yes, when you’re first starting you will take a hit and you will have to pay your dues. But please, keep your receipt from those dues paid. Most importantly, be OK with walking away from certain opportunities but discern when it makes sense to do something for free or discounted price. Perhaps you’re getting value in exposure, enhanced brand identity, experience or mentorship but make sure that you are walking away with something!